Stocks ended mixed Monday, snapping a three-day winning streak, as Wall Street kicked off a big week for earnings reports.
The Dow Jones Industrial Average lost 344.31 points, or 0.80%, to finish the session at 42,931.60, while the S&P 500 slipped 0.18% to close 5,853.98, and the tech-heavy Nasdaq gained 0.27% to end the day at 18,540.01.
Adam Turnquist, chief technical strategist, LPL Financial, said that last week, the S&P 500 rose 0.9% and closed at a record high.
“This was the broader market’s sixth straight weekly gain, marking its longest winning streak of the year,” he said.
“While the market is entering a potentially volatile period ahead of the election and facing overhead resistance near the upper end of its rising price channel, history suggests investors should buy dips as momentum tends to continue after a six-week winning streak," Turnquist said.
Updated at 12:25 PM EDT
Tesla on deck
Tesla shares extended their recent drawdown in mid-day Monday trading ahead of the carmaker's third quarter earnings later in the week.
Tesla, which is down 12.6% over the past month and 8.5% since its disappointing robotaxi event in Los Angeles on October 10, is expected to post a bottom line of 48 cents per share on revenues of $25.37 billion.
Tesla shares were last marked 0.97% lower, against a 0.17% pullback for the Nasdaq, and changing hands at $218.68 each.
This week $TSLA reports earnings. This is what I’m expecting to see:
— Cole Grinde (@GrindeOptions) October 20, 2024
1. Tesla met the streets expectations of 462,000 deliveries this quarter. I’m excited to see what the margins were this quarter.
2. Energy and storage should be higher (the numbers vary greatly quarter to…
Updated at 11:20 AM EDT
King dollar
The U.S. dollar index, which tracks the greenback against a basket of six global currencies, hit a fresh two-month high of 103.824 as Treasury yields continue to climb amid reflation risks tied to the world's biggest economy.
Gold prices, as well, are holding recent gains, after hitting an all-time peak of $2,733 per ounce in overnight trading.
As the price hits yet another record high today, here are some thoughts on why the West should pay much greater attention to what is behind the yellow metal's breathtaking performance this year.https://t.co/eRjXVbuheY#economy #markets #investing #investors @FT #gold pic.twitter.com/FWOrdDjwzM
— Mohamed A. El-Erian (@elerianm) October 21, 2024
Updated at 9:34 AM EDT
Modest opening dip
The S&P 500 was marked 7 points, or 0.13% lower in the opening minutes of trading, with the Nasdaq down 47 points, or 0.26%.
The Dow, meanwhile, slipped 58 points while the mid-cap Russell 2000 fell 1 point, or 0.04%.
Benchmark 10-year Treasury note yields were last marked at 4.138%, up 2 basis points from overnight levels, while 2-year notes were pegged at 3.989%.
S&P 500 Opening Bell Heatmap (Oct. 21, 2024)$SPY -0.08%🟥$QQQ -0.16%🟥$DJI -0.02%🟥$IWM -0.04%🟥 pic.twitter.com/cNmPduyuoM
— Wall St Engine (@wallstengine) October 21, 2024
Updated at 8:41 AM EDT
New Disney boss?
Walt Disney (DIS) shares were active in premarket trading after the media and entertainment giant named James Gorman as group chairman, replacing Nike (NKE) executive Mark Parker early next year.
The group also said it would plan to announce a new CEO, replacing interim boss Bob Iger, in 2026.
"The Disney Board has benefited tremendously from James Gorman's expertise and guidance, and we are lucky to have him as our next Chairman -- particularly as the Board continues to move forward with the succession process," Iger said. "I'm extremely grateful to Mark Parker for his many years of Board service and leadership, which have been so valuable to this company and its shareholders, and to me as CEO."
Walt Disney Co $DIS SEC filing: https://t.co/JR8ggjimlQ
— 8-K Alerts (@8KAlert) October 21, 2024
Disney's (DIS) Board of Directors has named James Gorman as the new chairman, effective 1/2/2025
1/11 DIS
Stock Market Today:
Stocks ended higher on Friday, with the S&P 500 hitting a fresh all-time peak to extend its year-to-date gain to around 23%, powered in part by robust earnings from Netflix (NFLX) and a solid domestic economy heading into the final months of the year.
Earnings are likely to take center-stage this week amid a dearth in economic data releases, with around 114 S&P 500 companies expect to report third quarter earnings this week, including market heavyweights such as Tesla (TSLA) , Boeing (BA) , AT&T (T) and International Business Machines IBM.
LSEG data suggests collective profits for the benchmark are likely to rise 4% from last year to a share-weighted $506.6 billion, with that set to accelerate to 11.9% over the final three months of the year.
Headwinds to another week of equity market gains, however, could come one again from the bond market, where concerns over a resurgence in inflation have lifted benchmark 10-year note yields to 4.116% in overnight trading, marking a gain of around 50 basis points since the Federal Reserve's outsized rate cut in September.
Benchmark 2-year notes, meanwhile, were last seen trading at 3.983% while the dollar index was a whisker away from its two-month high against a basket of its global peer at 103.578.
The renewed inflation concerns, tied in part to the extraordinary gains the U.S. economy has made since the start of the year, helped lift gold prices to a fresh record high of $2,733 per ounce in overnight trading.
Related: Tesla and Boeing may rock markets this week
Heading into the start of the trading day on Wall Street, futures contracts tied to the S&P 500 suggest a modest 11 point opening bell decline, withe the Dow Jones Industrial Average called 60 points lower from Friday's record high close.
The tech-focused Nasdaq, meanwhile, is called 68 points lower with Nvidia (NVDA) , Tesla, Lucid (LCID) and MicroStrategy (MSTR) active in premarket trading.
Kenvue shares were another notable mover, rising 5.2% to $22.85 each following reports that activist investors at Starboard Value have built a stake in the Johnson & Johnson (JNJ) consumer products spinoff.
Boeing, meanwhile, jumped 3.9% to $161.01 after the planemaker and its striking machinists union agreed to terms on a labor deal that will be voted on later this week.
More Wall Street Analysts:
- Analysts update Meta stock price target with Q3 earnings in focus
- Analysts update outlook for Nvidia's Blackwell chips amid AI boom
- Analyst reboots Reddit stock price target ahead of earnings
In overseas markets, Europe's Stoxx 600 benchmark slipped 0.22% lower in early Frankfurt trading ahead of an active week of earnings, lead by regional lenders Deutsche Bank, Lloyds and Barclays. Britain's FTSE 100 was marked little-changed from last week's close at 8,358.81 points.
Overnight in Asia, an expected bank lending rate cut gave stocks in China a boost, but pullbacks around the region left the MSCI ex-Japan benchmark 0.49% lower heading into the close of trading. The Nikkei 225 in Tokyo slipped 0.07%.
Related: Veteran fund manager sees world of pain coming for stocks
